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ABSTRACT:

In the current volatile business context, although consumers are increasingly interested in environmentally friendly products, actual purchasing behavior is still unstable due to the impact of many different factors. In particular, word-of-mouth marketing (WOM) has been studied to lead to customer purchasing behavior. Associated with environmentally friendly products such as vegan cosmetics, businesses implement marketing through product positioning strategies to emphasize the position of quality and the message through that product to the minds of target customers. This study was conducted to explore the impact of WOM and the moderating role of product positioning in influencing the purchase behavior of vegan cosmetics in emerging markets like Vietnam. Through a survey of 402 consumers with survey data processed through PLS-SEM, the study found a positive impact of WOM on green purchase behavior and a positive moderating effect of product positioning in this relationship. From there, vegan cosmetics businesses should leverage WOM through influencers and customer reviews, while positioning their products in line with sustainable values. They should also target Gen Z and millennials through digital marketing and combine online and offline strategies to increase WOM effectiveness and drive market growth.

KEYWORDS:

Green purchase behavior; product positioning; vegan cosmetics; word of mouth marketing.

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